More Green Tax Credits and Grants

In the recent CPA Client Bulletin, an article discussed opportunities for businesses to gain energy efficiency while also receiving tax benefits and financing for the upgrades. There are many opportunities in the coming years to plan a cost-effective strategy around going green in your business and real estate holdings.For example, if your company makes a 50 percent cut in energy costs by installing heating, cooling, ventilation or internal lighting equipment, you could get a tax deduction in 2011 of $1.80 a square foot. Smaller cuts in energy efficiency could still net you deductions of up to 60 cents a square foot.There are also federal tax credits available of 10 percent or 30 percent for certain alternative energy investments. If you don’t owe enough tax in a given year to receive the credit, you can apply to the IRS for cash to assist with the purchase price. Several of these credits apply only to alternative energy installations prior to 2016 or 2017, so proper planning and budgeting will help you take advantage of these credits within the designated timeline.There are also several programs through the State of Minnesota and public and private utilities. They are in the form of financing and rebates for alternative energy investments, energy efficient appliances and systems. Visit the following link to find a list of opportunities for your state or community:http://www.business.gov/manage/green-business/energy-efficiency/state-local/When planning to upgrade a commercial, industrial or rental property for energy efficiency and greener operations, talk to us at HG&K for advice on getting the highest financial and tax benefits. We can discuss these programs and let you know how they may apply to your business. We can also help you determine the best strategy for investing in and budgeting for improvements in order to receive a faster return.